Crude

Cushing, OK
* The delivery point for futures traded on NYMEX
* Rising inventories/stockpiling reflects wide gap between price of oil for delivery in next month & contracts to deliver later
* Contango is the norm in oil markets, with the price gap representing the cost of storing the oil & locking up investors' money
* Unusually large gap or super-contango may reflect current sluggish demand & expectations that demand will pick up in following months...
  + Contango 'creates financial incentive to store more barrels'
  + Investors can simply buy early contract, take physical deliver, store it, & at same time sell later contract at higher prices
* Max storage capacity in Cushing is ~42.4M barrels, but only ~80% (or ~34M barrels) is operable storage space
* BBERG: DOESCROK Index
  + DOE Cushing, OK Crude Oil Total Stocks Data
  + Updated Weds 10:30AM for previous week end Friday
  + From Energy Information Administration's Weekly Petroleum Status Report
  + Estimated, based on weekly data collected by DOE

Balance Sheet

NCOs — or loans written off as uncollectable